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1 Steve Chandler, VP, Business Liaison Frances Coletta, Ph.D. R.D - Director of Health & Wellness Purdue University September 18, 2007
2 Topics Sara Lee what we stand for and what we do Our Innovation Process: from process to market success Innovation focus areas Our commitment to innovation and future talents: The Sara Lee Innovation Award
3 Sara Lee What we stand for
4 Sara Lee Brands What we do Bakery Beverage
5 Sara Lee Brands What we do Household Products Meats
6 Sara Lee Company Profile Sales of $15.9 billion* Source: Sara Lee 2005 Annual Report Over 100,000 employees* Three main divisions: Food & Beverage (North American retail competes in three of the largest grocery categories packaged meats, fresh & frozen bakery, and coffee) Foodservice (North American CALLED business MARK focused GOLDMAN on marketing meat, bakery and beverage products to the foodservice channel) Sara Lee International (marketing beverage and bakery products outside of North America as well as household and body care brands worldwide.) Major Brands: - Sara Lee - Bimbo - Ball Park - Chef Pierre - Earth Grains - Hillshire Farms - Jimmy Dean - Paradise Tea - State Fair - Senseo - Douwe Egberts - Senex - Pickwick - Superior Coffee - Ambi Pur - KIWI
7 The New Sara Lee Sara Lee Corporation We have operations in 58 countries and market products in nearly 200 nations Sara Lee Food & Beverage U.S. and Mexico Retail Meats U.S. Fresh DSD Bakery U.S. Branded Frozen Bakery Senseo Sara Lee Foodservice Foodservice Bakery Foodservice Beverage Foodservice Meats Coffee + Tea Direct Sara Lee International Global Household Products Beverage (ex. N.A.) Bakery (ex. N.A.)
8 US Manufacturing Plants Bakeries: 43 Meat Plants: 12
9 Sara Lee R&D Worldwide Bakery/Meat/Sauces & Dressings Chicago Bakery-Lyvon France H&BC The Hague Body Care/Shoe Care Baby Care/Laundry Coffee & Tea-Utrecht Coffee Systems Utrecht (DECS Int l) H&BC Amersfoort Oral Care H&BC Spain Air Care/Insecticides Coffee & Tea Chicago Bakery-Barcelona H&BC-Manila H&BC-India HB&C Malaysia H&BC-Africa Bakery-Australia
10 U.S. R&D Organization and People Located on Sara Lee headquarters campus in Downers Grove, IL 140 FTE's, further growth planned R&D Center of Excellence for Bakery, Meats and Sauces & Dressing $50,000,000 expansion to open 2008 Diverse professional backgrounds: Food Scientists, Food Engineers, Chemists, Nutritionists, Bio- Chemists, Sensory Experts, Statisticians, Packaging Engineers, Process Engineers, Business professionals, Project Managers and Administrators SL back office support: IP, Finance, HR Some demographics: 90% BS or higher, 5 MBA, 5 Ph.D 25% Minorities 40% Female (56% Female among top 2 levels)
11 From Process to Market Success Go/No Go to Market R&D associates integral throughout Grounded in consumer insights and capabilities
12 Innovation Keys to Success Deliver Tangible Benefits What problem are you solving for them Create Technical Product Platforms Provides base to sell line extensions Leverage Capabilities Utilizes assets, minimizes investment, increases return INSIGHTS BOUNDED IN CAPABILITIES
13 Innovation Focus Growth Platforms Sandwiches Snacking/Breakfast Snacking Ready to eat meals Premium bread 2050 Bread format for the future? Form and shape Nutrition Function & Usage Considerations Manufacturing capabilities Minimal capital investment (<$1MM) Distribution system Ambient Direct Store Door Refrigerated Frozen
14 Meat Refrigerated Pork/Turkey/Beef Bulk Sliced Fresh Sausage Pre-cooked Sausage Smoked Sausage Loops/Links Bread Ambient Sliced loaves Buns/Rolls English Muffin Hearth Bagels Crouton Sara Lee Capabilities Hot Dog Corn Dog Cocktail Sausage Salami Bakery Frozen Cheesecake Cake Pie (Fruit/Crème) Dough Pound Cake Kitting Refrigerated Salad Kits (no lettuce) Sandwiches Frozen Skillets Sandwiches Bakery - Ambient Snack cake Croissant Donut Dough Refrigerated Biscuits Rolls Sauces & Dressings BBQ/Ranch/Caesar Oil & Vinegar
15 Apple Cin. & French Toast Bagel Everything Bagel Better Better Sandwich Sandwich Wide Pan S&S 100% Wheat Thick Slice S&S 100% Multi Grain/ Honey Whole Grain White H&D Oat 100% Whole Grain Better for You Breakfast Sandwich Ultra Thin New Flavors Deli Lunchmeat Deli Ultra Premium Bulk Meat SL Large Buns Kaiser 4 pack & S&S Cluster Hot & Ham Buns Bacon Skillets Wheat Dinner Roll Sliced Dinner Rolls Quick Quick Meals/ Meals/ Snacks Snacks HF Entrée Salad Stuffins 2 lb Beef Cheese HF Honey BBQ Link Breakfast Bowl Cappuccino HF Wrap Bite Size Sweets Simple Sweets Fruit & Cream Pies 6 Pies Hot Breakfast Smoothies JD Bacon MAP Link & Patty
16 The Sara Lee Innovation Award
17 Why Innovation Award Click to edit Master title style - Expose students to Sara lee as a world class innovation company - Establish an ongoing Sara Lee R&D relationship with Purdue University - Provide an experience that would challenge students to think about innovation - Provide Sara Lee with an innovative idea or product with the potential to enter the market place Who & What - Yearly Award given to talented individuals or teams for identifying a meaningful food or packaging innovation for Sara Lee's Bakery or Meat business - $10,000 Award - Executives from Purdue University and Sara Lee will serve as the Innovation jury - Students from Food Science, Foods and Nutrition, Agricultural and Biological Engineering, Hotel and Tourism Management are eligible to participate How - Students submit an application listing their idea/concept, advisor and assumed budget - Over one semester, students develop their product and accompanying process technology - 2 process reports and a final report need to be issued - Final presentation include product and process technology, judged by joint Sara Lee/Purdue team
18 Sara Lee 2007 Innovation Award Click to edit Master title style The Entries Sophisticated Swirls Twistin Tornado Pounders Winner Most Sophisticated Swirls out of the box Most out of the box innovative thinking Takes Sara Lee cheesecake heritage to a new generation Outstanding taste performance and quality
19 Sophisticated Swirl Click to edit Master title style Created by the Customer; Shaped by Sara Lee Allows consumers to design and select their favorite cheesecake dessert Reduced calorie All natural Multiple and novel flavor combinations Premium quality proposition Contemporary format
20 Sophisticated Swirl Click to edit Master title style Created by the Customer; Shaped by Sara Lee Our product was based on: Exploration of most recent trends Completely new dessert recipe Combination of multiple innovative ideas Cutting-edge ordering process E-commerce Trends Marketing potential: Gives today s cheesecake consumer a better-for-you choice Draws new consumers into the category Convenience Foodservice markets Retail markets
21 2007 Innovation Award What we learned Click to edit Master title style See attachment for quotes A white and wheat swirl bread product to provide: 1. An attractive source of excellent source of fiber 2. To children
22 2007 Innovations Award What we learned Click to edit Master title style Kyle Kemp & Becky Nelson Foods and Nutrition See attachment A yogurt covered, fruit filled reduced calorie pound cake bite to: 1. Provide consumer with a dessert bite that has the added benefit of 2. Live, active probiotics 3. Added calcium & Vit C
23 2007 Innovation Award What we learned Click to edit Master title style Katherine Gonzales Whitney Prochno Tiffany Schieber Brad Scholten April 12, 2007 Chef Carl Behnke, Mentor
24 2008 Innovation Award Critical Dates to remember Click to edit Master title style Olivia Wood to complete
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